Whole Foods has seen its sales and profits decline recently. In response, the food retailer has opened some new stores under the name 365. Read more about 365 in this article “Whole Foods Is Getting Killed by Aldi. Is a Millennial Grocer Chain the Fix?” (Bloomberg Businessweek, June 20, 2016). What is the target market for Whole Foods new 365 stores? Is this different from a typical Whole Foods store? How is the 365 marketing strategy (compare each of the 4 Ps) different from that used by Whole Foods? Do you think it will work?
Silicon Valley startup Zipline is delivering blood and emergency medicine to rural areas of Rwanda. You can learn more about Zipline in the YouTube video below. Review the discussion of Exhibit 11-2. Estimate how Zipline’s drone delivery effects inventory cost, cost of lost sales, and transportation costs as compared to possibly shipping supplies by car/truck over 200 miles of jungle roads. This will of course require you to make some estimates on costs, provide a an explanation. Estimate how Zipline’s drone delivery might be evaluated if it was added as a row in Exhibit 11-5.
The What’s Next? box in chapter 10, “Bits and bytes need distribution, too” describes how digital products require many of the same regrouping activities as physical goods. Sean Parker (best known for starting Napster and later as the first president of Facebook) has developed a new product (Screening Room), which would “allow people to watch movies at home on the same day they make their big-screen debuts.” The Screening Room is shaking up Hollywood which is used to a gradual evolution in distribution channels. Most movies play in theaters (where consumers pay relatively higher prices) for their first few months, before moving to [Continue Reading …]
As you know from chapter 9, identifying and developing new-product ideas — and effective strategies to go with them — can be key to a firm’s success and survival. So what do you do if your main product is a sports drink first developed 50 years ago by a team of scientists at the University of Florida after a request from the football coach (the football team is nicknamed the Gators — hence the name Gatorade)? After years of focusing on new flavors and packaging, Gatorade is using technology to personalize its contribution to athletic performance. Read more about Gatorade’s “smart cap” [Continue Reading …]
Marketing practices — and laws that govern those practices — are always changing. Chapter 8 discusses food product labels. Recently the Food and Drug Administration made changes to the nutrition facts label that appears on the side of packaged foods. The new label reflects the latest scientific information on how foods — in particular sugar — contribute to an unhealthy diet. For full details, we refer you straight to the U.S. Food and Drug Administration website, “Changes to the Nutrition Facts Label” (May 20, 2016). Review the press release at the FDA website (link above). List three changes to the [Continue Reading …]
Mary Meeker is one of the most well-known and well-respected tech gurus. Every year Meeker presents her highly anticipated “Internet Trends Report.” While the 213 slide deck included all kinds of insights about the Internet (and you are encouraged to review it), part of the presentation was particularly critical of online advertising. As you know from chapter 15, advertisers are following people’s “attention” which has moved from TV to online and particularly to mobile devices. Yet advertisers are still struggling to figure out how to break through and grab customer’s attention. Read more about it in “Mary Meeker is right – most online [Continue Reading …]
One example of the experimental method discussed in chapter 7 is an A/B test. You can read about a real-life example of this in “Google Tested 3 Versions of This Honey Maid Ad to See Which Worked Best Online” (Adweek, April 13, 2016). Google compared :15, :30, and 2:17 versions of an ad for Honey Maid. After reading the article, figure out how the ad follows each stage of the book’s “five-step scientific approach to the marketing research process” (see Exhibit 7-3). Provide answers to these questions: 1) What is the problem? 2) What are some examples of a situation [Continue Reading …]
As we know from chapter 6, organizational customers are different as compared to consumers. The chapter notes that “most purchasing managers start with an Internet search when they need to identify new suppliers, better ways to meet needs, or information to improve decisions.” Yet as noted in this article, “Stop Treating B2B Customers Like Digital Novices,” (Harvard Business Review, May 10, 2016) many companies that sell to B2B customers have yet to figure out how to take advantage of the web. Review the text book’s discussion of Exhibit 6-4, the Model of Organizational Buying. Now think about how the ideas [Continue Reading …]